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K Satish Reddy, Chairman, Dr Reddy’s Laboratories, said Budget 2016 has been a mixed bag overall. The focus on infrastructure, rural development and social sector spending are important catalysts for boosting the economy’s growth rate.
On the healthcare front, the budgetary emphasis on the sector was fairly muted, he said. “While certain initiatives such as the new health insurance scheme or the National Dialysis Services programme were good, perhaps a more holistic, well-rounded thrust would have served the sector better in delivering good health to those in need of it,” he added.
The initial outlay of ₹1,000 crore to fund higher education, he said, was simply not enough, given the growing need for access to high quality education.
Weighted deduction
The reduction of the weighted deduction on R&D from the present 200 per cent to 150 per cent starting 2017-18 and eventually phasing it out from 2020 will hurt industry, according to V V Parasuram, Global Head, R&D, Dr Reddy’s Laboratories.
Pragmatic, wide-rangingAccording to RK Dalmia, Chairman, Texprocil, it is a pragmatic, wide-ranging and inclusive Budget. The government has accepted the suggestions of the council and not imposed any mandatory duty on cotton yarn. He welcomed the reduction in basic Customs duty on fibres and yarn from 5 per cent to 2.5 per cent, the proposed changes in the customs and excise duty rates towards simplifying the procedures and the assurance given in the Budget on extension of support to the export sector.
A Sakthivel, President, Tirupur Exporters’ Association, said garments exporters have voiced concern on the proposed move to levy excise duty on branded garments and made-up textile products when the retail sale price is over ₹1,000. M Senthilkumar, Chairman, The Southern India Mills’ Association, hailed the government’s decision on continuing optional Cenvat route on cotton textiles.
While welcoming the reduction in the basic Customs duty on MMF, the SIMA Chief pointed out that the association had sought for total withdrawal of the same. He felt the government could have avoided imposition of 2 per cent central excise duty without Cenvat credit facility or 12.5 per cent central excise duty with Cenvat credit on branded readymade garments and made-up textiles, priced over ₹1,000.
Prabhu Damodharan, Secretary, Indian Texpreneurs’ Forum, terming it a progressive Budget, said “the measures announced will boost the growth of rural, farm and infrastructure sectors. The need of the hour is to take care of these sectors to pep up the overall development of the economy.”
A Sakthivel, Regional Chairman, FIEO Southern Region, said the “initiatives towards ease of doing business, focusing on MSMEs as well as facility of deferred payment of customs duty will help exporters reduce their transaction cost.”
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